"A small engine concept is being proposed for a 0.25 cid two-stroke commercially available engine that will allow the elimination of volatile fuel additives and lubricating oil. The concept will lead to fuel consumption improvements and increases in powerdensity in heavy-fueled small bore homogeneous compression ignited engines. The concept includes the use of solid lubrication coatings and thermal barrier coatings applied to a engine. Thermal barrier coating applicable to Aluminum surfaces have beendeveloped by Adiabatics, Inc. and will be applied to the combustion chamber surfaces to retain heat of compression. The use of increased compression ratio, thermal insulation and a glow plug will provide the conditions for compression ignition andcombustion. Coating technology that is low-cost and conducive to high volume production has been identified for applications to the critical components such as the main bearings, piston skirt, crankshaft rod pin, piston wrist pin and the cylinder linerbore. In addition, the use of technologies such as exhaust port tuning, exhaust gas recirculation and fuel pre-heating are expected to complement combustion improvements. The Phase I option will investigate a low cost lightweight fuel injection system andoptimize hot combustion chamber design. Upon completion of this project a small high speed 2-stroke model aircraft engine will be available that will be capable of running on fuels such as JP5/JP8 a